2 weeks ago
Ethena’s synthetic stablecoin, USDe, has crossed $8.4 cardinal successful supply, adding much than $3.14 cardinal implicit 20 days successful a surge that outpaced flows into BlackRock’s (BLK) flagship bitcoin and ether exchange-traded funds.
According to on-chain information curated by the Ethena community, the proviso summation since July 17 is the fastest play of maturation since the protocol's inception successful February 2024.
Inflow into the yield-bearing stablecoin exceeds the $2.75 cardinal added to BlackRock’s ether ETF (ETHA) and the $1.60 cardinal into its bitcoin ETF (IBIT) successful the aforesaid period, making the DeFi-native stablecoin the biggest magnet for superior crossed some on- and off-chain markets successful caller weeks.
The rally has spilled implicit into Ethena’s governance token ENA, which more than doubled successful the past month, though it is down 12% successful the past 24 hours arsenic traders anticipation the long-awaited interest power volition soon activate.
The protocol has already surpassed astir of the thresholds required to administer gross to staked ENA holders, with the last benchmark, a favorable output dispersed versus rivals, expected to beryllium met soon.
USDe's reflexive loop
USDe’s caller maturation reflects a almighty reflexive loop built into its halfway design, arsenic Nansen explained successful a caller probe study connected the Ethena ecosystem.
As bitcoin and ether prices rally, perpetual backing rates successful crook progressively positive. Ethena captures this backing via delta-neutral hedges, and distributes it arsenic real-time output to sUSDe holders.
That higher output past draws successful much users, starring to greater USDe issuance, much hedging, and much protocol revenue.
In the past month, Ethena has brought successful astir $50 cardinal successful provender and $10 cardinal successful revenue, according to DeFiLlama data. This makes it the sixth best-performing protocol for monthly interest gross according to the information aggregator.
ENA is presently trading for $0.58.
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